Oil prices are rising: key factors
26 January 13:26
Oil prices rose on Monday, January 26, amid production disruptions in major US oil-producing regions, while fears of a surplus are keeping markets from a more significant rise.
This was reported by "Komersant Ukrainian" with reference to Reuters.
By 08:27 Kyiv time, Brent crude futures had risen 0.85% to $66.44 per barrel, while WTI crude futures had risen 0.88% to $61.61 per barrel. Both benchmarks ended last week with a 2.7% gain, closing on Friday at their highest level since January 14.
“Oil prices this week (up) are being driven by signs of production disruptions in the US and ongoing geopolitical risk, offset by expectations of oversupply in 2026,” said Priyanka Sachdeva of Phillip Nova Pte Ltd.
Due to severe cold weather, US oil production has fallen by about 250,000 barrels per day, including declines in the Bakken field in Oklahoma and parts of Texas, according to a JPMorgan note.
According to analysts, the market’s attention is also focused on geopolitics due to growing tensions between Washington and Tehran: an American strike aircraft carrier group and other military forces are expected to arrive in the Middle East in the coming days. At the same time, Sachdeva of Phillip Nova noted that market participants are more concerned about the duration of the supply surplus than individual news headlines.
“Unless OPEC or the largest producers announce significant production cuts, the overall picture will continue to point to soft structural fundamentals in 2026,” she said.
